IATA halves its 2010 loss forecast for airlines

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LONDON (MarketWatch) -- The International Air Transport Association (IATA) on Thursday halved its loss forecast for the global airlines industry in 2010 to $2.8 billion, from a December prediction of $5.6 billion, citing a much stronger-than-expected recovery in demand since the start of the year, particularly in Asia Pacific and Latin America. The industry body added that flat capacity translated into some improvement in average fares and thus stronger revenue. Still, the IATA pointed out that demand is recovering more slowly in North America and Europe. "We are seeing a definite two-speed industry. Asia and Latin America are driving the recovery. The weakest international markets are North Atlantic and intra-Europe, which have continuously contracted since mid-2008," said IATA CEO Giovanni Bisignani. The IATA also lowered its 2009 loss estimate to $9.4 billion from an earlier forecast of $11 billion.

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